Redundancies
What does constitute redundancy?
You are regarded as redundant where a dismissal is wholly or mainly attributable to:
- Move of place of business
When a business moves from the place where you were employed, the distance between the old and new premises and inconvenience to you are used to decide whether the move is sufficient to warrant a redundancy. The test is where you worked, not where you could be required to work under your contract of employment.
- Cessation of business
This is where your employer has ceased, or intends to cease, the business for the purpose for which you were employed. It also applies where the part of the business where you work is closed, but the rest of the business continues.
- Surplus labour
Work re-organisation or new labour-saving devices can lead to redundancies where fewer workers or different skills are needed. Where fewer employees are needed for existing work or there is less work for existing employees, an Employment Tribunal will consider the work you could be required to do under the contract of employment, not simply the work you actually did at the time of dismissal.
What does not constitute redundancy?
You would not be regarded as redundant where a dismissal is wholly or mainly attributable to:
- Transferring night workers to day workers
- Changes to a shift system to promote efficient working
- Reduction of overtime
- Transferred redundancy (bumping in redundancy)
- Bumping in redundancy is where an employee, whose own position is redundant, is transferred to another position, making the holder of that second position redundant. Redundancy bumping is legally permissible provided the correct procedure is followed in respect of the bumped employee.
Redundancy provisions – who is covered?
All employees are covered by statutory redundancy provisions. An employee is defined as an individual who has entered into or works under a contract of service. Although you need at least two years’ continuous employment to claim a redundancy payment, you only require one year’s continuous service to bring a claim for unfair dismissal. However, where your employer selects you for redundancy for a discriminatory reason, you can bring a claim of discrimination without any qualifying period.
How we can support you
We understand redundancy is stressful and you need people on your side.
If you have been made redundant or are worried about a potential redundancy, our employment law lawyers are ready to provide you with employment law advice. We will give you practical assistance aimed at ensuring you’re treated fairly throughout the process.
How we can support you as an employer
We understand handling redundancies can be a complex and sensitive process but one that needs to be done for the benefit of the business. We are here to guide you through every step, ensuring a fair, compliant and efficient approach is followed.
If you require strategic advice, assistance with consultation process or support in minimising legal risks, we can provide practical solutions tailored to the needs of your business. Let Advantage Solicitors help you navigate redundancies with confidence and clarity.